Bond

A bond is a loan that a government or company takes from investors. When someone buys a bond, they are lending money with the promise of being repaid later with interest. Bonds help fund public projects like highways, schools, and hospitals. Investors buy bonds as a safe way to earn money over time. Bonds can sometimes also be traded on the secondary market, where investors buy and sell bonds before they mature. This allows bondholders to sell their bonds for a profit or loss, depending on interest rates and market conditions.